Tesla 2016 Annual Report Download - page 87
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Please find page 87 of the 2016 Tesla annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.(z)“TradingDay”meansadayonwhichthenationalstockexchangeuponwhichtheCommonStockislistedisopenfortrading.
3.Eligibility.
(a) First Offering Period . Any individual who is an Eligible Employee immediately prior to the first Offering Period will be
automaticallyenrolledinthefirstOfferingPeriod.
(b) Subsequent Offering Periods . Any Eligible Employee on a given Offering Date subsequent to the first Offering Period will be
eligibletoparticipateinthePlan,subjecttotherequirementsofSection5.
(c)Limitations.AnyprovisionsofthePlantothecontrarynotwithstanding,noEligibleEmployeewillbegrantedanoptionunderthe
Plan(i)totheextentthat,immediatelyafterthegrant,suchEligibleEmployee(oranyotherpersonwhosestockwouldbeattributedtosuchEligibleEmployee
pursuanttoSection424(d)oftheCode)wouldowncapitalstockoftheCompanyoranyParentorSubsidiaryoftheCompanyand/orholdoutstandingoptionsto
purchasesuchstockpossessingfivepercent(5%)ormoreofthetotalcombinedvotingpowerorvalueofallclassesofthecapitalstockoftheCompanyorofany
ParentorSubsidiaryoftheCompany,or(ii)totheextentthathisorherrightstopurchasestockunderallemployeestockpurchaseplans(asdefinedinSection423
oftheCode)oftheCompanyoranyParentorSubsidiaryoftheCompanyaccruesataratewhichexceedstwenty-fivethousanddollars($25,000)worthofstock
(determinedattheFairMarketValueofthestockatthetimesuchoptionisgranted)foreachcalendaryearinwhichsuchoptionisoutstandingatanytime.
4.OfferingPeriods.ThePlanwillbeimplementedbyconsecutiveOfferingPeriodswithanewOfferingPeriodcommencingonthefirstTradingDay
onorafterMarch1andSeptember1ofeachyear,oronsuchotherdateastheAdministratorwilldetermine.TheAdministratorwillhavethepowertochangethe
durationofOfferingPeriods(includingthecommencementdatesthereof)withrespecttofutureofferingswithoutstockholderapprovalifsuchchangeisannounced
priortothescheduledbeginningofthefirstOfferingPeriodtobeaffectedthereafter.
5.Participation.
(a)FirstOfferingPeriod.AnEligibleEmployeewillbeentitledtocontinuetoparticipateinthefirstOfferingPeriodpursuanttoSection
3(a)onlyifsuchindividualsubmitsasubscriptionagreementauthorizingpayrolldeductionsinaformdeterminedbytheAdministrator(whichmaybesimilarto
theformattachedheretoasExhibitA)totheCompany’sdesignatedplanadministrator(i)noearlierthantheeffectivedateoftheFormS-8registrationstatement
withrespecttotheissuanceofCommonStockunderthisPlan and (ii) nolaterthanten(10)businessdaysfollowingtheeffectivedateofsuchS-8registration
statement or such other period of time as the Administrator may determine (the “ Enrollment Window ”). An Eligible Employee’s failure to submit the
subscriptionagreementduringtheEnrollmentWindowwillresultintheautomaticterminationofsuchindividual’sparticipationinthefirstOfferingPeriod.
(b) SubsequentOffering Periods . An Eligible Employee may participate in the Plan pursuant to Section 3(b)by (i) submitting to the
Company’s payroll office (or its designee), on or before a date prescribed by the Administrator prior to an applicable Offering Date, a properly completed
subscription agreement authorizing payroll deductions in the form provided by the Administrator for such purpose, or (ii) following an electronic or other
enrollmentprocedureprescribedbytheAdministrator.
6.PayrollDeductions.
(a)AtthetimeaParticipantenrollsinthePlanpursuanttoSection5,heorshewillelecttohavepayrolldeductionsmadeoneachpayday
duringtheOfferingPeriodinanamountnotexceedingfifteenpercent(15%)oftheCompensationwhichheorshereceivesoneachpaydayduringtheOffering
Period;provided,however,thatshouldapaydayoccuronanExerciseDate,aParticipantwillhavethepayrolldeductionsmadeonsuchdayappliedtohisorher
accountunderthesubsequentOfferingPeriod.AParticipant’ssubscriptionagreementwillremainineffectforsuccessiveOfferingPeriodsunlessterminatedas
providedinSection10hereof.